Jul 10, 2013

Worries about finances continue to be at an all time high.
Everything, except wages and income, seem to be going up. If you are struggling
with your money, there is plenty of help out there so don't struggle alone. If,
however, you just need a short term or payday loan, why not try a logbook loan?

Even if they aren't talking about it, most people these days
are feeling the pinch. The recession and its after effects continue to rumble
on, causing problems for families across the country. Managing money and
juggling finances simply as a means to get by each month has become a necessity
in pretty much every household. Even the most scrupulous and careful money
managers have had to take out loans.

Credit HistoryIf your credit rating is not good you might find that banks
or other lenders are turning you down. However, there are companies out there
that recognise a bad credit report doesn't always tell the whole story.
People's circumstances change and just because they have had difficulties
before, it shouldn't automatically follow that they are not good for a loan
now. Companies such as logbook lenders may therefore be able to help.

A logbook loan sounds like exactly what it is, you borrow
money against your car. This type of loan is typically therefore a small loan,
somewhere between500 and5,000 and is usually for vehicles under a
certain age, usually 10 years. Exceptions to this rule are obviously classic
and vintage cars which retain and often increase in value and in these cases
you may be able to borrow up to50,000.
As a rule of thumb, logbook lenders will loan you up to around 70% of the trade
value of your vehicle.

How Much And How Long?There are a number of popular logbook lenders, take a look online
for details of the best offers and service. A loan from logbook lenders tends
to be a short term loan, typically around a year but it can be for as little as
three months or even up to two years. It is usually taken out to solve smaller
short term cash flow problems. As with other loans, the quicker you are able to
pay it back, the cheaper it is.

Terms And ConditionsTo quality for a loan from logbook lenders you need to own
the vehicle outright, i.e., you can't still be paying finance for it. Check,
however, as if you only have a month or two left on this, you might still
qualify for a logbook loan. It must be in the name of the person applying for
the loan. The vehicle must also be insured, taxed and have a valid MOT
certificate.

Make sure you shop around and choose a lender with a good
reputation who offers both good service and excellent terms such as a low APR.

AUTHOR BIOSmith is a finance expert and columnist. He writes regular
features for a range of magazines as well as having his own money advice
column. "When you need to take out a loan", says Smith "make
sure you do your homework and choose a reputable company. There are a number of
popular logbook lenders who
tick all the right boxes and offer a good service".